Aldersgate United Methodist Retirement Community was founded in the 1940s as an organization committed to providing housing and services to elders in the community. Since then, the organization has grown to be one of Charlotte’s most respected aging services providers.
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CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]
HJ Sims Advises Poydras Home on Expansion Project, Community Improvements and Refinancing
FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful closing of a May 2021 financing in the amount of $23,340,000 for Poydras Home (Poydras), a continuing care retirement community in New Orleans, LA.
Opened in 1857, Poydras now consists of 10 independent living units, 22 assisted living units, 11 memory care units and 64 private nursing care beds. Poydras will replace all 64 nursing units with a small-house model and add 14 new assisted living units across two three-story buildings. Poydras engaged Sims to assist in developing a plan of finance, and to navigate and plan for operations post-COVID-19.
Poydras will be the first certified Green House project in Louisiana, featuring an innovative Green Home model of care where the resident’s needs are at the center of all decisions. This person-centered approach provides residents with individualized care and higher levels of satisfaction. The Green Homes will be housed in two new three-story buildings on the campus. Building 1 will feature three nursing care households with 12 residents, and Building 2 will be comprised of two nursing care households with 14 residents and one assisted living memory care household with 14 residents. Each home will offer private bedrooms and baths, open-concept kitchen, dining room, living room, den, and outdoor space overlooking gardens.
Sims evaluated plans of finance and structured two taxable loans with a commercial bank. Poydras sought to refinance the organization’s outstanding loan to create debt service savings. Sims coordinated with management and the Board of Poydras on a strategy that combined their two financing goals: funding their new project (Construction Loan), and refinancing their existing loan (Refinancing Loan). Sims led the bank RFP process, selecting Hancock Whitney as the preferred banking partner. As well, Poydras was notified that their planned construction contractor would be unable to complete the project; therefore, Sims worked closely with the team to revise the plan of finance and secure a new construction partner.
Poydras Home, Sims, and Hancock Whitney closed the $23.34 million financing, which consisted of a $16.50 million taxable draw-down construction loan and a $6.84 million taxable refunding loan. Hancock Whitney served as the commercial lending partner for both loans. The Series Construction Loan was issued with a 25-year principal amortization and 10-year term with a 24-month capitalized interest period and a forward-starting swap drawdown structure to provide significant savings. The Refunding Loan was issued with a 25-year term with a significant rate premium to break the existing swap.
“Poydras was impressed with the responsiveness of our partners at Sims in resolving questions and concerns when working with an active Board of Directors, during a building supply shortage, an uncertain economic landscape, a pandemic and via Zoom. The process was much less stressful than our previous transactions, and we left knowing we got a great deal for the future of our mission at Poydras. Our duty is to provide the best care for our elders and to protect the assets of Poydras, which will be met with this expansion. We are grateful for Sims’ expertise,” said Erin Kolb, CEO, Poydras.
Financed Right® Solutions—James Rester: 901.652.7378 | [email protected] or Ryan Snow: 843.870.4081 | [email protected]
ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, Sims has nationwide investment banking, private wealth management and trading locations. Member FINRA, SIPC. Testimonials may not be representative of another client’s experience. Past performance is no guarantee of future results. Facebook, LinkedIn, Twitter, Instagram.
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FOR IMMEDIATE RELEASE
CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]
Asbury Communities Partners Again with HJ Sims to Achieve Savings
FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful closing of a June 2021 financing for $47,615,000 for Asbury Communities, Inc. (Asbury), which owns/operates life plan communities in PA, MD, and TN, HUD Section 202 senior housing, a foundation and a technology consulting firm. The facilities included in its PA and MD Obligated Groups are owned/operated by Asbury Atlantic, Inc., a wholly-owned subsidiary of Asbury.
Asbury’s PA Obligated Group (PA Obligated Group) is comprised of two life plan communities – Bethany Village Retirement Center (Bethany) in Mechanicsburg, PA, and Springhill in Erie, PA. Bethany includes two campuses with 400 independent and 100 assisted living units, and a 69-bed skilled nursing center and amenities. Springhill has 158 independent living and 35 personal care units, and an 80-bed skilled nursing facility.
Sims served as underwriter for several Asbury transactions, including a $59.5 million financing in 2019 and a 2020 refinancing. The objectives were to maximize debt service savings while minimizing/eliminating renewal risk associated with traditional commercial bank financings. Sims recommended a hybrid finance plan with benefits of a traditional bank loan and a fixed rate bond issuance.
The refinancing of the Series 2012 Bonds consisted of a bank loan in the amount of $20,380,000 and tax-exempt fixed-rate bonds in the amount of $27,235,000. The bank loan utilized the Cinderella Bond structure, with initial issuance on a taxable basis until eligible for conversion to a tax-exempt rate in October 2021. The favorable cost of capital and the loan fully amortizing over a 12-year term eliminates need to refinance the debt. A forward starting interest rate swap was arranged, set to initiate upon conversion to a tax-exempt interest rate, resulting in a synthetically fixed rate for the bank loan.
A forward commitment for the fixed-rate bond portion refinanced the remainder of Series 2012 Bonds with principal amortization beginning following maturity of the bank loan. The structure leveraged a favorable interest rate to lock-in pricing. Asbury sought to maintain savings as rates continued to rise targeting at least 10% savings. The taxable loan will be refinanced by a tax-exempt bank loan and the tax-exempt bonds will be delivered October 4, 2021. The loan and Series 2021 Bonds maintained level debt service for the PA Obligated Group for the remaining life of the bonds, providing savings of 11.73%.
For the PA Obligated Group, the aggregate $47,615,000 Series 2021 Bonds are projected to generate $400,000+ of annual debt service savings through 2041 and net present value (NPV) savings of $5.5 million. Inclusion of the bank improved Asbury’s savings relative to a fixed rate forward refunding structure for the full refinancing by providing approximately 20% of the total NPV savings, lowering cost of capital and interest expense while maintaining certainty of future debt service for the life of the bonds.
“Once again, Sims helped Asbury navigate through a complicated transaction, which lowered interest costs while maintaining existing covenants and all other material debt terms,” said Andrew Jeanneret, CFO, Asbury.
Financed Right®: Aaron Rulnick: 203.418.9008 | [email protected] or Melissa Messina: 203.418.9015 | [email protected].
ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, Sims has nationwide investment banking, private wealth management and trading locations. Member FINRA, SIPC. Testimonials may not be representative of another client’s experience. Past performance is no guarantee of future results. Facebook, LinkedIn, Twitter, Instagram.
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Westminster Village West Lafayette was established in 1976 and subsequently formed into a not-for-profit Life Plan Community in 1981. Located off of Cumberland Park in West Lafayette, Indiana, the community held a long-standing reputation for producing quality services to middle-class retirees.
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Asbury engaged HJ Sims again to facilitate the refinancing of the PA Obligated Group’s outstanding Series 2012 Bonds. In evaluating potential refunding structures, the two key objectives were to maximize debt service savings while also minimizing or eliminating the renewal risk associated with traditional commercial bank financings.
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$83,715,000*
VIRGINIA SMALL BUSINESS FINANCING AUTHORITY
Residential Care Facilities Revenue and Refunding Bonds
LifeSpire of Virginia
SERIES 2021
HJ Sims is pleased to serve as senior underwriter for tax-exempt Series 2021 revenue and refunding bonds on behalf of LifeSpire of Virginia, a not-for-profit organization currently comprised of four senior living properties and a foundation committed to supporting its communities through fundraising.
Virginia Baptist Homes, Inc. d.b.a. LifeSpire of Virginia and its Obligated Group currently operate four Life Plan Communities in Virginia with a total of 763 independent living units, 203 assisted living units, 82 memory care units and 227 skilled nursing units. These communities include:
While each LifeSpire community features a unique setting and benefits, all share a single mission of empowering individuals with choices in purposeful living and a value system that reflects the ideals of faith, servant-leadership, stewardship, peace of mind, innovation and joy.
About the Bonds
Project
Security
Key Financial Covenants
We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of August 2, 2021, and anticipated settlement during the week of August 16, 2021. For more information including risks, please read the Preliminary Official Statement in its entirety. If you have interest in purchasing these bonds, please contact your HJ Sims financial professional as soon as possible.
*Subject to change
No dealer, broker, salesperson, or other person has been authorized to give any information or to make any representation other than those contained in the Preliminary Official Statement and, if given or made, such other information or representation should not be relied upon as having been authorized by the Issuer, the Borrower, or the Underwriters. The information set forth herein has been obtained from the Issuer, Borrower, and other sources that are believed to be reliable, but is not guaranteed as to accuracy or completeness by, and is not construed as a representation of, the Underwriters. The information contained herein is subject to change without notice. Under no circumstances shall this constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offering or solicitation will be made only to investors pursuant to the Preliminary Official Statement, which should be read in its entirety. Investments involve risk including the possible loss of principal. HJ Sims is a member of FINRA and SIPC, and is not affiliated with Virginia Baptist Homes, Inc.
FOR IMMEDIATE RELEASE
CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]
HJ Sims Provides High-leverage Acquisition Financing for a Utah Senior Living Community
FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce that it recently provided a high leverage bridge loan for the successful acquisition of a Utah senior living community.
The community has been the most recognized option for seniors housing in its local market and will continue to care for long-time residents that in some cases, come from miles away. Featuring 55 units of assisted living and memory care, the community features mountain views from its hilltop location in a thriving and growing local market.
A regional owner, operator and developer of seniors housing communities, with 15+ years of experience, partnered with Sims to close on the acquisition. The well-established group specializes in assisted living and currently manages over 1,600 units in more than 25 communities across five states in the Mountain West region. The sponsor has deep local knowledge and is well experienced in bringing that local touch to their communities, making it truly feel like home for all of their residents. With a strong understanding, and insight into the major primary markets and growing secondary markets in the region, the group’s local knowledge and operational expertise provides a clear strategy in expanding their geographical reach. This addition to their growing portfolio is an ideal fit.
Seeking a high-leverage acquisition loan and the ability to close under tight timing constraints, the owner/operator approached Sims for the solution. Partnering with Live Oak Bank, Sims provided a high-leverage bridge loan to fund the acquisition, and arranged funds for capital improvements at the property. The first mortgage was structured as an A/B uni-tranche loan, acting as a single debt obligation with one set of loan documents and one monthly mortgage payment.
The high-leverage A/B structure proved to be different from a conventional bank loan, allowing the operator to increase their ownership and avoid involving additional equity partners. The loan was structured with an interest-only period, allowing the group to limit debt service expense over the near term. The loan included an upfront debt service reserve, which allowed the first payment to be pushed out enabling the borrower to focus immediate, out-of-pocket expenses on capital improvements at the property, prioritizing the upgrade of the community.
The “outside-of-the-box” customized financing structure helps the long-time operator preserve strategic
capital for additional growth opportunities and for the support of other communities in their portfolio. A principal and co-founder of the group commented, “Sims not only provided a unique solution that helped us reduce the need for outside investors that would dilute our ownership, but met the timing constraints that were so important to everyone involved.”
Sims excels in providing customized, timely financing solutions for communities across the country, allowing owners and operators to focus on providing quality senior living at their communities.
Financed Right® Solutions—Jeff Sands: [email protected] or 203.418.9002 | Brady Johnson: [email protected] or 949.558.8297 | Curtis King: [email protected] or 512.519.5003 | Brett Edwards: [email protected] or 512.519.5001
ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, Sims has nationwide investment banking, private wealth management and trading locations. Member FINRA, SIPC. Testimonials may not be representative of another client’s experience. Past performance is no guarantee of future results. Facebook, LinkedIn, Twitter, Instagram.
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FOR IMMEDIATE RELEASE
CONTACT: Tara Perkins, AVP | 203-418-9049 | [email protected]
HJ Sims Partners with Westminster Village as Investment Bank and Swap Advisor Helps Community Accomplish a Refinancing
FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful June 2021 Direct Bond Placement in the amount of $60,515,000 for Westminster Village (WVWL) in West Lafayette, IN.
WVWL was established in 1976 and subsequently formed into a not-for-profit Life Plan Community (LPC) in 1981. Located off of Cumberland Park in West Lafayette, IN, WVWL held a long-standing reputation for producing quality services to middle-class retirees. Historically a partner with Purdue University, WVWL’s reputation and mission grew into today’s 346-bed LPC.
Given WVWL’s financial strength, the community sought to take advantage of the low interest rate environment in 2020 to refinance its outstanding Series 2014 tax-exempt and taxable Direct-placement Bonds (Series 2014 Bonds). The incumbent bank proposed a refinancing opportunity that struck WVWL’s management team as an above-market proposal. WVWL engaged Sims to analyze the proposal. Sims was chosen based on experience, market-depth and culture. Sims solicited banking partners based on engagement and initial analysis.
WVWL went into the market seeking to refinance the Series 2014 Bonds. Tied to the Series 2014 Bonds were two swaps that were largely out-of-the-money; WVWL also had a legacy forward-starting swap that was originated in 2010 and became effective in 2020 during COVID-19.
Sims constructed a plan of finance to generate adequate debt service savings despite the expenses associated with refunding the Series 2014 Bonds and terminating all of WVWL’s Swaps. The plan of finance conformed to the terms provided by any potential banking partners via the bank solicitation.
Sims found a banking partner with terms that would offer flexibility and savings for WVWL. The partner offered a proposal that provided material savings. The plan of finance Sims tailored for WVWL generated enough savings to for the community to reconsider a new-money. The $15 million project repurposed some of WVWL’s existing independent living units into assisted living and memory care units that were in high demand on campus.
Sims, in conjunction with the new banking partner, crafted the $60,515,000 plan of finance (Series 2021 Bonds). The financing included the refinancing escrow for the Series 2014 Bonds, the termination of all existing swaps (including the forward-starting swap), and a draw-down facility for the new-money project. The terms provided by the banking partner and the structure formulated by Sims allowed for WVWL to comfortably execute the Series 2021 Bonds without increasing residents’ monthly service fees. This was accomplished via aggressive pricing, a 12-year term, and a 30-year amortization provided by the new banking partner.
Sims closed the Series 2021 Bonds for WVWL via Direct Placement Bonds for the tax-exempt refinancing, a Term Loan for the taxable refinancing, and a draw-down facility for the new project money. After pricing the new swaps for the refinancing debt, Sims captured a taxable interest rate of 3.19% and a tax-exempt interest rate of 2.54% for WVWL. The credit spread for the refinancing portion was 100 bps lower than the incumbent bank’s original refinancing proposal. The new-money project funds were kept variable and will utilize a draw-down feature that allows WVWL to materialize capitalized interest savings. Sims generated a plan of finance that accomplished all of WVWL’s objectives, including $15 million in new-money, without increasing maximum annual debt service against the refunded Series 2014 Bonds, resulting in an efficient capital structure for the community that generated savings and a new product offering for campus residents to enjoy.
“As I was relatively new to my position, the thought of handling a refinancing seemed like a daunting task. Thankfully, after careful consideration our Board of Directors chose to partner with Sims. Sims understands the complex procedures involved with refinancing and made sure to provide extensive education during the entire process. Lynn and Brady took great care in ensuring each step was broken down into understandable components. I truly enjoyed working with Sims and look forward to continuing our partnership for years to come,” said Jessica Argerbright, Director of Accounting and Finance, WVWL.
Financed Right® Solutions—Lynn Daly: [email protected] or 312.505.5688 | Brady Richardson: [email protected] or 240.207.1362.
ABOUT HJ SIMS: Founded in 1935, HJ Sims is a privately held investment bank and wealth management firm. Headquartered in Fairfield, CT, Sims has nationwide investment banking, private wealth management and trading locations. Member FINRA, SIPC. Testimonials may not be representative of another client’s experience. Past performance is no guarantee of future results. Facebook, LinkedIn, Twitter, Instagram.
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Westminster Village West Lafayette was established in 1976 and subsequently formed into a not-for-profit Life Plan Community in 1981. Located off of Cumberland Park in West Lafayette, Indiana, the community held a long-standing reputation for producing quality services to middle-class retirees.
Continue readingOur team of market analysts have a singular mission: to help you make better investment decisions. Read the latest market commentary.
Continue readingOur team of market analysts have a singular mission: to help you make better investment decisions. Read the latest market commentary.
Continue readingOur team of market analysts have a singular mission: to help you make better investment decisions. Read the latest market commentary.
Continue readingOur team of market analysts have a singular mission: to help you make better investment decisions. Read the latest market commentary.
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$79,065,000*
DULUTH ECONOMIC DEVELOPMENT AUTHORITY
(St. Louis County, Minnesota)
Revenue Bonds
BENEDICTINE HEALTH SYSTEM
SERIES 2021A
HJ Sims is pleased to serve as sole underwriter for tax-exempt Series 2021A revenue bonds on behalf of Benedictine Health System, a Minnesota nonprofit corporation, a Catholic healthcare system that provides long-term care services, congregate housing, assisted living, rehabilitation services and other health-care and social services. Benedictine is the 10th largest not-for-profit senior living provider in the country. Benedictine Health System is the parent corporation of the Obligated Group, among other entities.
The Benedictine Obligated Group consists of 21 senior living communities in Minnesota and North Dakota that in aggregate comprise of 1,242 nursing beds, 811 assisted living units, and 153 independent living units.
The vision of Benedictine is to enhance its communities (Benedictine Living Communities) where health, wellness and choice come to life. The core values of Benedictine are hospitality, stewardship, respect, and justice.
About the Bonds
Project
Security
Key Financial Covenants
We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of June 28, 2021, and anticipated settlement during the week of July 12, 2021. For more information including risks, please read the Preliminary Official Statement in its entirety. If you have interest in purchasing these bonds, please contact your HJ Sims financial professional as soon as possible.
*Subject to change
No dealer, broker, salesperson, or other person has been authorized to give any information or to make any representation other than those contained in the Preliminary Official Statement and, if given or made, such other information or representation should not be relied upon as having been authorized by the Issuer, the Borrower, or the Underwriters. The information set forth herein has been obtained from the Issuer, Borrower, and other sources that are believed to be reliable, but is not guaranteed as to accuracy or completeness by, and is not construed as a representation of, the Underwriters. The information contained herein is subject to change without notice. Under no circumstances shall this constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offering or solicitation will be made only to investors pursuant to the Preliminary Official Statement, which should be read in its entirety. Investments involve risk including the possible loss of principal. HJ Sims is a member of FINRA and SIPC, and is not affiliated with Benedictine Health System, Benedictine Obligated Group or any of its related entities or any other organization referred to herein.
A regional, owner, operator and developer of seniors housing communities, with over 15 years of experience, recently partnered with HJ Sims to close on the acquisition of a senior living community in Utah.
Continue readingOur team of market analysts have a singular mission: to help you make better investment decisions. Read the latest market commentary.
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$60,370,000*
PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY
$60,370,000* Series 2021 Long-Term Fixed Rate Bonds
(Pennsylvania Economic Development Financing Authority Revenue Bonds / Presbyterian Senior Living Project)
HJ Sims is pleased to serve as sole underwriter for Presbyterian Homes Obligated Group (the “Obligated Group”) consisting of: Presbyterian Homes, Inc.; Cathedral Village; Presbyterian Homes in the Presbytery of Huntingdon; The Long Community, Inc.; Quincy Retirement Community; and PHI Investment Management Services, Inc. (collectively, the “Obligated Affiliates”). The Obligated Affiliates own, operate, and manage 12 continuing care retirement communities, three stand-alone independent living facilities, and two stand-alone personal care homes – all located throughout Pennsylvania, Ohio and Delaware.
The Series 2021 bonds will (1) refund certain outstanding bank debt; (2) provide approximately $38MM in proceeds to fund certain capital improvements to the Communities; and (3) pay for costs of issuance.
The not-for-profit organizations that make up the obligated group are all Pennsylvania-based not-for-profit senior living communities, each of which are 501(c)(3) organizations.
Virtual Site Visits/Tours
Learn more about each of the Presbyterian Senior Living communities and locations throughout Pennsylvania, Maryland, Ohio, and Delaware.
About the Bonds
Project Highlights:
Security
Key Financial Covenants
We are currently accepting indications of interest for these tax-exempt bonds with an expected pricing the week of June 21, 2021, and anticipated settlement during the week of July 14, 2021. For more information including risks, please read the Preliminary Official Statement in its entirety. If you have interest in purchasing these bonds, please contact your HJ Sims financial professional as soon as possible.
*Subject to change
No dealer, broker, salesperson, or other person has been authorized to give any information or to make any representation other than those contained in the Preliminary Official Statement, and, if given or made, such other information or representation should not be relied upon as having been authorized by the Issuer, the Borrower, or the Underwriters. The information set forth herein has been obtained from the Issuer, Borrower, and other sources that are believed to be reliable, but is not guaranteed as to accuracy or completeness by, and is not construed as a representation of, the Underwriters. The information contained herein is subject to change without notice. Under no circumstances shall this constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Investments involve risk, including the possible fluctuation of principal. Investments involve risk including the possible fluctuation of principal. Past performance is not indicative of future results. The purchase and sale of securities should be conducted on an individual basis considering the risk tolerance and investment objectives of each investor and with the advice of counsel of a professional advisor. HJ Sims is an independent financial services firm and is not affiliated with Presbyterian Senior Living, Presbyterian Homes Obligated Group or any of its related entities or any other organization referred to herein.